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- iHaveNet.com: Politics
by James Angel
Some parts of Dodd-Frank should be repealed
"Dodd-Frankenstein" is a deeply flawed bill that contains many different laws thrown together, some good and some bad.
Fortunately or unfortunately,
Some parts should be repealed. As enacted, the "Volcker rule" that prohibits banks from engaging in certain types of "proprietary trading" will not substantially reduce risk in the banking system, but will substantially drive up costs that ultimately get passed on to consumers. The government estimates that it will consume over six million (!) person hours for banks to comply with that provision alone. The well meaning but deeply flawed provision on conflict minerals should also be repealed. That section will impose huge costs on public companies that have nothing to do with the appalling human rights abuses in the Congo, while doing nothing about the non-public companies that do contribute to the problem.
Other parts should be fixed. We needed better regulation of OTC derivatives, but the new law needs to be refined.
Reconsider Dodd-Frank, Piece by Piece | Politics
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